Malaysia's ringgit moves evoke 1998 comparison

Kuala Lumpur

MALAYSIA's attempt to cajole currency traders to stop selling down its plunging ringgit is evoking memories of 1998 capital controls among global banks - a comparison policymakers were quick to discourage.

RBC Capital Markets and Brown Brothers Harriman said investors were reminded of the Asian financial crisis 18 years ago, after Bank Negara warned foreign banks this month against using offshore forwards to bet against the currency and vowed to limit speculation.